What's happening
This bill allows insurers to offer lower, zero, or decreasing deductibles for physical damage insurance, with required disclosures and limits on penalty increases.
Why it matters
Expands consumer choice and flexibility. by allowing insurers to offer innovative deductible options—such as zero-dollar or shrinking deductibles—which could help customers better manage out-of-pocket costs, especially if they rarely file claims.
Mandates clear disclosures. about how these new deductible structures interact with other policy terms, their additional costs, conditions for reduction or increase, and their impact on premiums, helping consumers make more informed insurance decisions.
Protects against double penalties. by prohibiting insurers from raising both the premium and deductible for the same claim or incident, ensuring that policyholders aren't unfairly penalized compared to traditional deductible structures.
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Who cares
Auto physical damage insurers
The bill would let them offer reduced, zero-dollar or diminishing deductibles while requiring disclosures about costs, policy interactions and conditions for deductible changes.
Drivers buying physical damage coverage
They could gain deductible options below existing statutory limits, including deductibles that decline over time and may reach zero.
Policyholders with reduced, zero-dollar or diminishing deductibles
The bill would prohibit insurers from raising both their premium and deductible in response to the same claim or incident, while allowing either one to increase.
Headline styles
Lower Car Insurance Deductibles
Plain English, a few words. Used as the page title.
Sponsors
8 Co-sponsors
4 Multi-sponsors
History
- Referred to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Lower Car Insurance Deductibles
In Senate Committee · Insurance · Sponsor Leroy Comrie
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4544
2019-2020 Regular Sessions
IN ASSEMBLY
February 4, 2019
Introduced by M. of A. COOK, D'URSO -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to deductibles for physical damage insurance
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (k) of section 3411 of the insurance law is amended to read as follows:
(k) (1) Each insurer which offers physical damage insurance subject to the provisions of this section shall offer such insurance with a standard deductible of two hundred dollars for each occurrence. The insured shall, however, at the inception of the policy or at the annual anniversary date, or at the time of the replacement or addition of an automobile, have the option of purchasing a policy with a lesser deductible, but in no event may the insurer sell a policy with a deductible of less than fifty dollars for fire, theft or comprehensive insurance coverages (one hundred dollars for assigned risk policies issued pursuant to paragraph two of subsection (a) of section five thousand three hundred three of this chapter) and one hundred dollars for collision insurance coverage except that window glass coverage may be sold without a deductible. Each insurer which offers physical damage insurance subject to the provisions of this section shall also offer physical damage coverages with co-insurance or deductible provisions or combinations thereof as the superintendent may prescribe, including but not limited to deductibles of two hundred fifty dollars, five hundred dollars and one thousand dollars.
(2) Notwithstanding the dollar limits for deductibles in paragraph one of this subsection, an insurer which offers physical damage insurance subject to the provisions of this section may offer a reduced dollar deductible, a zero dollar deductible or a deductible that diminishes over time and may ultimately be reduced to zero dollars.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07992-01-9
A. 4544 2
(3) An insurer who offers a reduced dollar deductible, a zero dollar deductible or a deductible that diminishes over time shall disclose to the insured or potential insured at the time such a deductible is offered or a policy that has such a deductible is renewed how such a deductible would interact with the other provisions of the insured's policy, any additional cost to the insured for having such a deductible, the circumstances under which the deductible may be reduced or diminished, if and under what circumstances the deductible may be increased, and the effect that the deductible may have upon the insured's premium.
(4) Under no circumstances shall an insurer penalize an insured who has a reduced dollar deductible, a zero dollar deductible or a deductible that diminishes over time by increasing both the insured's premium and deductible in response to the same claim or incident. This paragraph shall not be construed to prohibit an insurer from increasing either the insured's premium or deductible in response to the same claim or incident.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.